Digitalisation - a hygiene factor
Digitalisation has transformed many industries, and HR is no exception. The rapid development of HR-tech means that many organisations need to abandon traditional working methods to adapt. In today’s digital job market with hybrid work and flexible workplaces, you might risk missing out on talent due to outdated processes.
Without digital working methods, valuable insights can be lost, which directly impacts the success of your organisation. The consequence may also be that it hampers collaboration within the organisation, and in the long run, it steals both time and resources from HR. Digital working methods offer entirely new opportunities for companies to discover and develop skills. The result is improved efficiency and quality throughout the employee journey.
In a survey* 9 out of 10 companies responded that they need to digitise skill development in order to be an attractive employer.
High employee turnover
Another consequence of ineffective talent management is high employee turnover. The right skills are a valuable asset for any organisation, but when talents disappear, it can become both costly and impact results. When you lack insight into the strengths and challenges of your employees, it is difficult to implement the right measures for their development. Furthermore, if they lack optimal conditions to meet the expectations placed upon them, they may even leave the organisation. The consequences are not just the loss of valuable skills, but also increased costs for recruiting and training new employees.
Ineffective leadership
Leadership is directly dependent on how your teams perform. Managers and leaders must be engaged and competent when it comes to identifying, developing, and retaining talent within the organisation. Without insight into their own strengths and challenges, and the conditions that drive engaged teams, effective leadership cannot be achieved. Ineffective leadership can lead to a decrease in psychological safety and result in employees not being included on equal terms. It can also mean that the potential of your coworkers cannot be optimally harnessed, and opportunities to accelerate success are missed. When leaders gain insight into their ability to drive change and development, and which leadership style suits the team’s needs, it can be adapted. This way, better conditions are created for everyone to deliver based on their full potential.
Source: HR 2023 - The Role and Challenges of HR in Swedish Workplaces
